A CASE STUDY FOR THE HIH INSURANCE3
Introduction
As appointed to be the Chair of the board of directors of JR Services Pty Ltd, it would
be of utmost importance to abide by the ASX Corporate Governance Best Practice Principles
along with following the provisions of Corporation Law. The management needs to steer
clear from the mistakes and wrongdoings that most companies have committed and for that
reason the case study of the collapse of HIH Insurance shall be discussed in the following
report. The board of directors shall be made aware of their duties that they shall be bound to
follow as per the Corporations Act 2001(Cth). Personal opinion on Ray William, Rodney
Adler and Dominic Fodera’s approach in HIH Insurance in terms of the Kohlberg’s Model of
Cognitive Moral Development shall be shared in order to provide a guideline for the
appropriate behaviour of the company executives and board members. Lastly, certain
reflections about the critical analyses of the case study on HIH, the inactions of its directors,
the overall characteristics of Cognitive Moral Development and an opinion on the position of
Chair of the board of directors of JR Services Pty Ltd.
ASX Corporate Governance Principles
The ASX corporate governance principles (4th edition) acts as a guideline of values,
culture and trust for the listed corporations on the Australian Securities Exchange, which is
recommended by the ASX Corporate Governance Council. It strives to guide the listed
companies so that they achieve good governance outcome and thereby meet the expectations
of the investors. The eight principles of ASX Corporate Governance revolves around
(Corporate Governance Principles and Recommendations 4th Edition, 2020):
 Clearly mentioning the duties and responsibilities of the board of directors and non-
executive members along with a regular scrutiny of their performance.

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A CASE STUDY FOR THE HIH INSURANCE

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